PepsiCo Inc, the No 2 soft-drink maker, on Thursday reported higher fourth-quarter profit on volume growth, a strong pricing environment and a favourable foreign exchange rate. The company reported earnings of $985 million, or 58 cents a share, compared with $914 million, or 52 cents a share, a year earlier. The results for the latest quarter met the average forecast from analysts polled by Reuters Estimates.

Revenue rose 9 percent to $8.8 billion, against analysts' expectations of $8.6 billion. Total volume of products sold world-wide rose 6 percent during the quarter.

PepsiCo forecast earnings per share of at least $2.55 for 2005, excluding the impact of the 53rd week, or $2.59 including that impact. Wall Street was expecting profit of $2.56.

Copyright Reuters, 2005